Raytheon 2007 Annual Report Download - page 89

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RAYTHEON COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) Years Ended December 31: 2007 2006 2005
Cash flows from operating activities
Net Income $ 2,578 $ 1,283 $ 871
Plus/(less): Loss (income) from discontinued operations, net of tax 57 (96) 27
Less: Net gain on sales of discontinued operations, net of tax (942) ——
Income from continuing operations 1,693 1,187 898
Adjustments to reconcile net income to net cash provided by operating activities from
continuing operations, net of the effect of acquisitions and divestitures
Depreciation and amortization 372 361 348
Deferred income taxes 182 176 64
Increase in accounts receivable 28 135
Change in contracts in process and advance payments and billings in excess of
costs incurred (197) 192 159
(Increase) decrease in inventories (12) 48 (19)
Decrease in prepaid expenses and other current assets 826 98
Increase in accounts payable 232 120 81
(Decrease) increase in accrued employee compensation (34) 344
Decrease in other accrued expenses (110) (13) (26)
Change in income taxes payable (638) 151 414
Origination of financing receivables —(8) (23)
Collection of financing receivables not sold 88 123 128
Sale of financing receivables —53 —
Tax benefit from stock-based awards (55) (31) —
Pension and other, net (308) 88 151
Net cash provided by operating activities from continuing operations 1,249 2,477 2,352
Net cash (used in) provided by operating activities from discontinued operations (51) 266 163
Net cash provided by operating activities 1,198 2,743 2,515
Cash flows from investing activities
Expenditures for property, plant and equipment (313) (294) (296)
Proceeds from sales of property, plant and equipment 837
Capitalized expenditures for internal use software (85) (77) (73)
Change in other assets (6) 52 114
Proceeds from sales of discontinued operations, net 3,143 ——
Payment for purchases of acquired companies, net of cash received (211) (87) (125)
Net cash provided by (used in) investing activities from continuing operations 2,536 (403) (373)
Net cash used in investing activities from discontinued operations (29) (48) (63)
Net cash provided by (used in) investing activities 2,507 (451) (436)
Cash flows from financing activities
Dividends paid (440) (420) (387)
(Decrease) increase in short-term debt and other notes —(55) 54
Repayments of long-term debt (1,724) — (671)
Repayments of subordinated notes payable —(382) —
Repurchase of common stock (1,642) (352) (436)
Proceeds under common stock plans 241 169 68
Tax benefit from stock-based awards 55 31 —
Net cash used in financing activities from continuing operations (3,510) (1,009) (1,372)
Net cash used in financing activities from discontinued operations —(25) (61)
Net cash used in financing activities (3,510) (1,034) (1,433)
Net increase in cash and cash equivalents 195 1,258 646
Cash and cash equivalents at beginning of year 2,460 1,202 556
Cash and cash equivalents at end of year $ 2,655 $ 2,460 $ 1,202
The accompanying notes are an integral part of the consolidated financial statements.
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